3/19/2023 0 Comments Anti monopoly![]() “It remains unclear how this will play out in practice as the mechanism to suspend is at SAMR’s sole discretion, which adds another layer of uncertainty to the timeline of an M&A process.”Īnother positive change is the creation of a safe harbour mechanism for vertical agreements. “This is especially true in the case of complex transactions where the current regime requires a ‘pull-and-refile’ of such transactions if no remedy can be achieved within the prescribed timeframe,” said Adam Au, general counsel at UMP Healthcare Holdings. Several sources welcomed the new mechanism and said it would be beneficial to those concerned. “It will likely be used in cases where remedies are considered in complex transactions.” “The decision to stop the clock will depend on the SAMR and it may be decided on a case-by-case basis so it’s unclear how the measure will be applied until we see it in practice,” said an in-house counsel at a technology firm. It is, however, unclear how the SAMR will apply the stop-the-clock mechanism. “It eliminates the need for firms with high competition concerns, such as those in the semiconductor industry, to have to withdraw and refile their cases.” “This mechanism allows for more flexibility when the SAMR is carrying out reviews, which typically need to be carried out within 180 days,” said Gao. One of the positive effects of the amendment is the introduction of a stop-the-clock mechanism to replace the practice of pulling and refiling in complicated cases. What are the unique aspects of the amendment? See also: Industry sets sights on Chinese carbon market expansion Additionally, criminal liability has been introduced in the amendment, though implementation details for that should be clarified through the Criminal Law at a later stage. But if there are anti-competitive violations, the fine will increase to up to 10% of the firm’s turnover in the previous year.” In cases of severe violation, the State Administration for Market Regulation (SAMR) may increase fines by up to 50% of the firm’s turnover in the previous year. “The maximum fine has increased from Rmb 500,000 ($74,764) to Rmb 5 million for unreported mergers without competition issues. “The increase in fines is bound to have a big impact,” said Liang Gao, partner at Gaopeng & Partners. One of the biggest changes is that failure-to-file and gun-jumping fines will be up to 10 times higher than they used to be, and may now reach 10% of an infringer’s group-wide turnover in the preceding year. What are the biggest changes to the Anti-Monopoly Law? The new version of the law came into force on August 1. The latest amendment incorporates a number of new features, including a so-called “stop-the-clock” mechanism for merger review, a safe harbour for certain vertical agreements, and rules targeting platform economy companies. First introduced in 2008, China’s Anti-Monopoly Law was amended for the first time in June. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |